Resorts World Las Vegas LLC Announces its Entry into an Amendment and Extension of its Existing Senior Secured Credit Facilities
LAS VEGAS, NV. (April 12, 2023) – Resorts World Las Vegas LLC (the “Company” or “RWLV”) today announced that it has signed definitive documentation in relation to $800 million of senior secured credit facilities (“Amended Facilities”) which will be established by way of an amendment and extension of the Company’s existing $1,345 million senior secured credit facilities (“Existing Facilities”). The Amended Facilities, together with the equity and junior capital described below, will be used to refinance a portion of the Existing Facilities, pay transaction fees and expenses associated with this refinancing, and, in certain circumstances in the future, fund the Company’s general corporate requirements.
The Amended Facilities, comprising a $700 million term loan and a $100 million revolving credit facility, have a scheduled maturity date of October 16, 2027, and include certain terms which provide additional operational and financing flexibility to the Company relative to those contained in the Existing Facilities. The signing of the Amended Facilities represents a notable financing milestone for both the Company and its parent company Genting Berhad (“Genting”, and together with its affiliates, “Genting Group”).
In establishing the Amended Facilities, the Company engaged both existing lenders and select new financial institutions who collectively provided financing commitments in excess of $800 million. “The oversubscription in financing commitments from existing and new lenders is a testament to the Company’s improving operational performance and the strong support from our parent company Genting Berhad”, said Scott Sibella, RWLV’s President.
Closing of the Amended Facilities is subject to customary closing conditions as well as receipt by the Company of (a) new equity contributions from Genting Group (“Equity Condition“), and (b) proceeds from any or a combination of issuance of unsecured debt, issuance of a subordinated shareholder loan, and injection of equity (which, for the avoidance of doubt, is in addition to the Equity Condition) from Genting Group of at least $300 million in aggregate (“Junior Capital Condition“). As of December 31, 2022, Genting Group had access to sufficient liquidity to provide the expected new equity contribution and/or subordinated shareholder loans to the Company to satisfy both the Equity Condition and Junior Capital Condition.
Upon closing of the Amended Facilities, the Company’s weighted average debt maturity will be extended and refinancing risks will be reduced given the Amended Facilities will effectively extend the maturities of the Existing Facilities from April 16, 2024 to October 16, 2027, and the Company’s Consolidated Total Net Leverage Ratio is expected to be reduced due to the satisfaction of the Equity Contribution.
“RWLV is a flagship asset of Genting Berhad and we want to thank all the new and existing lenders for demonstrating their support,” said Dato Sri Tan Kong Han, Genting Berhad’s President and Chief Operating Officer. “Genting Berhad remains committed to the long-term success of our landmark Las Vegas resort.”
A summary description of the Amended Facilities is available to bondholders on the Company’s Syndtrak website.
Formed on February 26, 2013, RWLV is the owner and operator of Resorts World Las Vegas, the newest large-scale integrated resort to open on the Las Vegas Strip in more than a decade. RWLV is a world-class integrated resort with over 3,500 hotel rooms and suites, and includes a multitude of gaming, convention, retail, food, beverage, and entertainment amenities. Located on approximately 86 acres on the northern end of the Strip, RWLV brings state-of-the-art technology and distinctive entertainment and experiential amenities to Las Vegas. Additionally, the Resort has over 42 acres of undeveloped land, which offers significant growth potential which few of its peers can match.
RWLV is an indirect wholly owned subsidiary of Genting Berhad, an investment holding and management company focused predominantly on the global gaming and hospitality industry. The Genting Group has a track record of over 57 years relating to sourcing, developing and operating integrated resorts in various parts of the world, including in highly rated and regulated jurisdictions such as Malaysia, Singapore, the U.K., the United States and the Bahamas. The Genting Group comprises Genting Berhad and its listed companies including Genting Malaysia Berhad, Genting Plantations Berhad and Genting Singapore Limited (which had market capitalizations of $3.5 billion, $1.2 billion and $8.6 billion, respectively, as of December 31, 2022), as well as principal unlisted subsidiaries Genting Energy Limited and RWLV.
This announcement includes forward-looking statements regarding, among other things, the plans, strategies and prospects, both business and financial, of the Company. These statements are based on the beliefs and assumptions of the Company’s management. Although the Company believes that the plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, there can be no assurance that the Company will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements in this announcement, including statements made by officers or directors of Genting or the Company, or by any of the Company’s advisors, other affiliates, subsidiaries or any other person acting on the Company’s behalf, that are not historical facts, including statements concerning the Company’s possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. Specifically, forward-looking statements may include, among others, statements concerning the closing and effectiveness of the Extension Amendment. These statements may include, be preceded by or followed by the words “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “forecast,” “predict,” “potential” or “continue” or the negative of these terms and other similar expressions. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: our limited operating history; our dependence on one property for all of our cash flow; the intense competition that our casino, hotel, convention and other facilities face, which may increase in the future; reductions in discretionary consumer and corporate spending as a result of global economic conditions; the continuous effect of the COVID-19 pandemic on our business, financial condition, results of operations and cash flows, which may continue for an extended period of time, and may worsen; negative conditions affecting the lodging industry; rising operating and other costs at our resort; and our ability to comply with the covenants or other restrictions contained in the agreements that govern our indebtedness. These risks and uncertainties, as well as other risks and uncertainties of which we are not aware or which we currently do not believe to be material, may cause our actual future results to be materially different than those expressed in our forward-looking statements. We caution you not to place undue reliance on these forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Forward-looking statements speak only as of the date of this announcement. The Company does not intend, and undertakes no obligation to, make any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement, except as required by law, including the securities laws of the United States, and the applicable rules and regulations of the Securities and Exchange Commission.
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